Marketing Management

MARKETING MANAGEMENT
What is Marketing?
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
Marketing Defined:
“Marketing is a social and managerial process by
which individuals and groups obtain what they need
and want through creating and exchanging value with
others”
•Marketing is about managing profitable customer

relationships
•Attracting new customers
•Retaining and growing current customers
What is Marketing?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
Selling is only the tip of the iceberg
“There will always be need for

some selling. But the aim of marketing is to make
selling superfluous. The aim of marketing is to know
and understand the customer so well that the
product or service fits him and sells itself. Ideally,
marketing should result in a customer who is ready to
buy. All that should be needed is to make the product
or service available.”
Peter Drucker
What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
The core concept of Marketing
Marketing is a social & managerial process by which individuals &

groups obtained what they need & want through creating, offering &
exchanging products of value with others.
Need, Wants, Value, Cost,
Products
Demands Satisfaction
Exchange,
Marketing &
Transaction, Market
Marketers
Relationship
Core Concept Of Marketing

• Human Needs –
It is a state of felt deprivation of some basic satisfaction. This
deprivation can be physical, such as the need for food and water,
social, in the need for a sense of belonging to a society and
personal in the need to self-expression. Those needs are part of
the human makeup and cannot be artificially created.
This is a Need
• Needs - state of felt

deprivation including
physical, social, and
individual needs
Wants –
These are desires for specific satisfiers of these deeper needs. Wants
change with time, place and the individual. It is determined by someone’s
culture and personality and therefore wants are not always the same. It is
not critical to human’s life but rather complementary
This is a Want
Wants – Needs become
wants when they are
directed to specific
objects that might
satisfy the need.
•Demands –
These are wants for specific products that are backed by an
ability & willingness to buy them.
This is Demand
Want Buying Power
Demand
EXAMPLE
A person suffering from dehydration will need a drink to hydrate, but will want Coca Cola.
This want is influenced by the constant advertisement of Coca Cola whether on TV, radios or
in schools and universities. In this situation, the approach will be: I need a drink, but I want
Coca Cola.
Coca Cola TVC

Coca Cola TVC
EXAMPLE
The Whirlpool brand and image speaks of its commitment to the homemaker from every
aspect of its functioning. It has derived its functioning principles out of an undaunted
partnership with the homemakers and thus a slogan of "You and whirlpool, the world's
best homemaker" dots its promotional campaigns.
The products are engineered to suit the requirements of 'smart, confident and in-control'
homemaker who knows what she wants. This marketing strategy drives customers toward
wanting a Whirlpool not any other brand of appliances. For people that can afford it, this will
become a demand since it gives the sense of importance and raises the status of the person
in their environment.
Whirlpool TVC
Whirlpool TVC
Whirlpool TVC
Whirlpool TVC
iPod is becoming a need for new generation. Young people
are hungry for self-expression and an iPod gives them just
that.
Apple TVC
Apple TVC
•Products –
These are anything that can be offered to satisfy a need or a

want.
– Combination of products, services, information or

experiences that satisfy a need or want
– Offer may include services, activities, people, places,
information or ideas
•Value
– Customers form expectations regarding value
– Marketers must deliver value to consumers
•Satisfaction
– A satisfied customer will buy again and tell others about their good
experience
Value and Satisfaction
•Perceived Value
– The customer’s evaluation of the difference between benefits and costs.
– Customers often do not judge values and costs accurately or objectively.
•Customer Satisfaction
– Product’s perceived performance relative to customer’s expectations.
Exchange, transactions and relationships
•Exchange
– The act of obtaining a desired object from someone by offering something
in return
– One exchange is not the goal, relationships with several exchanges are the
goal
– Relationships are built through delivering value and satisfaction

For an exchange to occur….
• There are at least two parties
• Each party has something that might be of value to the other
party
• Each party is capable of communication and delivery.
• Each party is free to reject the exchange offer.
• Each party believes it is appropriate or desirable to deal with
the other party.
A MARKET
Needs
Needs
People
People to
to
or
or Satisfy
Satisfy
Organizations
Organizations
Market
Market
Money
Money Willingness
Willingness
to
to to
to
Spend
Spend Spend
Spend
The marketplace isn’t what it used to be…
Changing
Changing technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Customization
Customization
Consumer
Consumer resistance
resistance
Competition
Competition
Demand States
•Negative demand – Major market dislikes product, hence try to avoid. eg.- injections.
•No Demand – Constant unaware and uninterested in product. eg.- Vacuum Cleaner
•Latent Demand – Need exists, not fulfilled by current products. eg.- Dish Washer.
•Declining demand – Demand decreases over period of time. eg.- Color TV , Music
Systems.
•Irregular Demand – Seasonally. eg.- Air Conditioners , Geysers .
•Full Demand – Good volume of business. eg.- FPD, Refrigerators, Washing Machine.
•Overfull Demand – Demand greater than ability to handle. eg.- In Diwali FPD , Summer
Season Refrigerators.
•Unwholesome Demand – Unwholesome product. eg.- Gun.
New Consumer Capabilities
• Substantial Increase in Buying power

• Greater variety of available goods and services
• Greater amount of information about practically
anything
• Greater ease in interacting and placing and
receiving orders
• Ability to compare notes on products and
services
• A voice to influence peer and public opinions
Company Orientations
Production Product
Selling Marketing
Marketing Management Philosophies
•Widely available and expensive

Production Concept •High production efficiency
•Low cost
•Mass distribution
Best quality performance
Product Concept Innovative features
New innovative products from time to time
Selling Concept ‘Unsought goods’ – Buyers normally do

not buy these products
‘Customer Centered’ –
Marketing Concept Focus not on finding the right customers
for the products but finding the right
products for the customers.
(1) THE PRODUCTION CONCEPT
Company
Produce more & more

Produce Consumers
Sell
Practically sells itself
THE PRODUCTION CONCEPT
• Consumers will favor those products that are widely
available and low in cost.
• Therefore increase production and cut down costs.
• And build profit through volume.

(2) THE PRODUCT CONCEPT
Practically sells itself,if

Produce it gives most quality for
Quality money
Products
Consumers
Sell
Buyers admire well-made products and can appraise

product quality and performance.
THE PRODUCT CONCEPT
• Consumers will favour those products that offer the most
quality, performance, or innovative features.
• Therefore, improve quality, performance and features.
• This would lead to increased sales and profits.

(3) SELLING CONCEPT
• Consumers have normal tendency to resist.
Aggressive selling &

Produce promotion efforts
Sell it Consumers
Making sales becomes primary function and consumer

satisfaction secondary .
THE SELLING CONCEPT
• Consumers , if left alone , will not buy enough of

company’s products.
• Therefore, promote sales aggressively.
• And, build profit through quick turnover.

(4) MARKETING CONCEPT
• “ LOVE THE CUSTOMER , NOT THE PRODUCT ”
Learn what they

want(MR) Produce it
Consumers
Market it
Sell what they want(Satisfy

needs of customers)
THE MARKETING CONCEPT
• The key to achieving organizational goals consist in

determining the needs and wants of target markets and
delivering the desired satisfactions more effectively and
efficiently than competitors.
• And build profit through customer satisfaction and loyalty.

(5) THE SOCIETAL MARKETING CONCEPT
• It is Marketing Concept (+) Society’s well being.
• Balancing of following three considerations while setting

marketing policies :
-Customer’s want satisfaction
-Society’s well being
-Company’s profits
THE SOCIETAL MARKETING CONCEPT
• The societal marketing concept holds that the

organization’s task is to determine the needs, wants, and
interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the
consumer’s and the society’s well being.
• Societal Marketing =
Consumer Satisfaction + Company ‘ s Profits +

Society’s well being.
The Selling and Marketing
Concepts Contrasted

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•Marketing is about managing profitable customer

“There will always be need for

Marketing is a social & managerial process by which individuals &

Core Concept Of Marketing

• Needs - state of felt

Want Buying Power

Coca Cola TVC

These are anything that can be offered to satisfy a need or a

– Combination of products, services, information or

– Customers form expectations regarding value

– Marketers must deliver value to consumers

– The customer’s evaluation of the difference between benefits and costs.

– Customers often do not judge values and costs accurately or objectively.

– Relationships are built through delivering value and satisfaction

• Substantial Increase in Buying power

•Widely available and expensive

Selling Concept ‘Unsought goods’ – Buyers normally do

Produce more & more

• Therefore increase production and cut down costs.

• And build profit through volume.

Practically sells itself,if

Buyers admire well-made products and can appraise

• Therefore, improve quality, performance and features.

• This would lead to increased sales and profits.

• Consumers have normal tendency to resist.

Aggressive selling &

Making sales becomes primary function and consumer

• Consumers , if left alone , will not buy enough of

• Therefore, promote sales aggressively.

• And, build profit through quick turnover.

• “ LOVE THE CUSTOMER , NOT THE PRODUCT ”

Learn what they

Sell what they want(Satisfy

• The key to achieving organizational goals consist in

• And build profit through customer satisfaction and loyalty.

• Balancing of following three considerations while setting

-Society’s well being

• The societal marketing concept holds that the

Consumer Satisfaction + Company ‘ s Profits +

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